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New year, new Electricity Regulation Amendment Act

The Electricity Regulation Amendment Act of 2024 officially came into effect on 1 January 2025, according to a presidential proclamation published in the Government Gazette. This will be the beginning of a transformative phase in South Africa's energy landscape. This Act is a cornerstone of the Ramaphosa administration’s ongoing efforts to reform and modernise the electricity sector.
2025 seems to be the year South Africa's electricity problems turn the corner. Source: Microsoft Designer
2025 seems to be the year South Africa's electricity problems turn the corner. Source: Microsoft Designer

The Act promises to address critical challenges, including enhancing transparency, stimulating competition, and improving energy security by introducing several new measures to increase the country's energy security.

Independent Transmission System Operator (TSO): The establishment of a TSO within the next five years is poised to ensure fair, efficient, and unbiased operation of South Africa's transmission grid.

Until then, the National Transmission Company of South Africa will temporarily fill this role.

Open market electricity trading: The creation of a competitive electricity marketplace, managed by Nersa, will allow for wholesale and retail trading of electricity, increasing market efficiency and potentially lowering costs.

Tougher stance on infrastructure sabotage: New provisions include penalties of up to R1m or five years’ imprisonment for those damaging or stealing infrastructure, showcasing the government’s resolve to combat crime in the energy sector.

Alignment with the Energy Action Plan

These reforms align with the Energy Action Plan introduced by Minister of Electricity and Energy Kgosientsho Ramokgopa, and the Eskom Roadmap, reflecting the Ramaphosa administration’s commitment to ending load shedding and securing a reliable energy supply.

There is also an emphasis on licensing, fair tariffs, and penalties for non-compliance aims to attract investment and catalyse innovation, further hastening South Africa’s energy transition.

Skills development

The commencement of this legislation signifies more than just policy implementation –these reforms are expected to stimulate demand for new skills, drive industrial growth, and create job opportunities.

South Africans now wait to see how swiftly these measures will bring real improvements, lighting the way to a more sustainable and secure energy future.

About Lindsey Schutters

Lindsey is the editor for ICT, Construction&Engineering and Energy&Mining at Bizcommunity
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